The following discussion and analysis of our financial condition and results of operations for the Year on March 31, 2024 and for the Fiscal Years 2023 and 2022 on the basis of Consolidated Restated Financial and Year ended on March 31, 2024 and for the Fiscal Years 2023 and 2022 on the basis of Standalone Restated Financial, and should be read in conjunction with, our Restated Financial Statements, including the schedules, notes and significant accounting policies thereto, included in the chapter titled "Restated Financial Statements" beginning on page 174 of this Draft Red Herring Prospectus. Our Restated Financial Statements have been derived from our audited financial statements and restated in accordance with the SEBIICDR Regulations and the ICAI Guidance Note. Our financial statements are prepared in accordance with AS. You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in this Draft Red Herring Prospectus. You should also read the section titled "Risk Factors" beginning on page 28 of this Draft Red Herring Prospectus, which discusses a number off actors, risks and contingencies that could affect our financial condition and results of operations. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year are to the twelve-month period ended March 31 of that year.
In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Trafiksol ITS Technologies Limited, our Company. Unless otherwise indicated, financial information included herein are based on our "Restated Financial Statements" for the Year on March 31, 2024 and for the Fiscal Years 2023 and 2022 on the basis of Consolidated Restated Financial and Year ended on March 31, 2024 and for the Fiscal Years 2023 and 2022 on the basis of Standalone Restated Financial included in this Draft Red Herring Prospectus beginning on page 174 of this Draft Red Herring Prospectus.
Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward Looking Statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factors.
BUSINESS OVERVIEW
Our Company was originally incorporated as Private Limited, under the Companies Act, 2013 ("Companies Act") in the name and style of "Trafiksol ITS Technologies Private Limited" on March 05, 2018 under the provisions of the Companies Act, 2013 vide Certificate of Incorporation issued by the Registrar of Companies, Central Registration Centre. Later on, company was converted into public limited company, subsequently the name of our Company was changed to "Trafiksol ITS Technologies Private Limited" to "Trafiksol ITS Technologies Limited" and fresh Certificate of Incorporation dated May 18, 2024 was issued by the Registrar of Companies, Central Processing Centre. The Corporate Identification Number of our Company is U72900UP2018PLC101608.
The team of Trafiksol is led by our visionary promoters, Jitendra Narayan Das and Poonam Das with a mission to provide exceptional, customized services. The initial subscribers to the Companys Memorandum and Articles of Association were Praveen Kumar Dubey and Indira Kammila. Post inception the company registered itself under the "Startup India Scheme"" in the year 2019 with the Government of India. Our focus lies in creating integrated solutions, conducting structural health monitoring, optimizing traffic management, and ensuring seamless transportation system operations. With this vision our Company procured various ISO certification for Quality Management System, Environment Management System, Occupation Health and Safety Management System and Information Security Management System viz., ISO 9001:2015, ISO 14001:2015, 45001:2018 and ISO/IEC 27001:2013 respectively. For further details of our promoter please refer the chapter titled "Our Promoters and Promoter Group"" beginning on page 165 of this Draft Red Herring Prospectus.
TrafikSol ITS Technologies Limited has garnered a robust standing for providing top-tier industrial services to clientele throughout India. The company distinguishes itself by adeptly harmonizing business strategies with personnel and procedures, thereby guaranteeing that clients strategic planning and execution yield favorable outcomes for their organizations. With an extensive array of consulting and design offerings, the company specializes in the design, administration, and incorporation of Intelligent Transportation Systems (ITS) for roads and tunnels. Its solutions are characterized by their security, resilience, and scalability, custom-crafted to precisely match the distinct requirements of clients in the domains of road infrastructure, tunnel management, and urban environments.
For information on our Companys profile, activities, products, market, growth, technology, managerial competence, standing with reference to prominent competitors, major vendors and suppliers, please refer the chapter titled "Business Overview", "Industry Overview", "Our Management", "Restated Financial Statements" and "Managements Discussion and Analysis of Financial Condition and Results of Operations" beginning on pages, 108, 150, 174 and 184 respectively of this Draft Red Herring Prospectus.
SIGNIFICANT DEVELOPMENTS AFTER MARCH 31, 2024
Except as mentioned below, In the opinion of the Board of Directors of our Company, since March 31, 2024, there have not arisen any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months.
1. The Board of the Company has approved to raise funds through Initial Public Offering in their meeting held on May 18, 2024.
2. The members of the Company approved proposal of Board of Directors to raise funds through Initial Public Offering in the Extra-Ordinary General Meeting held on May 18, 2024.
3. The Board of the Company has approved restated financial statements in their meeting held on May 20, 2024.
KEY PERFORMANCE INDICATORS OF OUR COMPANY*
As per Restated Consolidated Financial Statements
(? in Lakhs)
For the year ended March 31 |
|||
| Key Financial Performance | 2024 | 2023 | 2022 |
| Revenue from Operations (1) | 6,581.12 | 3,629.59 | 2,791.21 |
| EBITDA (2) | 1,778.35 | 501.96 | 247.41 |
| EBITDA Margin (%) (3) | 27.02% | 13.83% | 8.86% |
| PAT | 1,209.30 | 477.85 | 205.19 |
| PAT Margin (%) (4) | 18.38% | 13.17% | 7.35% |
| Return on equity (%) (5) | 52.33% | 49.27% | 32.66% |
| Return on capital employed (%) (6) | 26.23% | 30.71% | 21.08% |
| Debt-Equity Ratio (times) (7) | 0.31 | 0.66 | 0.69 |
| Net fixed asset turnover ratio (times) (8) | 26.71 | 27.01 | 116.72 |
| Current Ratio (times) (9) | 3.00 | 1.91 | 1.98 |
*As certified by M/s Vijay Darji & Associates, Chartered Accountants, by way of their certificate dated May 20, 2024.
Notes:
1. Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps to assess the overall financial performance of our Company and volume of our business.
2. EBITDA provides information regarding the operational efficiency of the business.
3. EBITDA Margin (%) is an indicator of the operational profitability and financial performance of our business.
4. PAT Margin (%) is an indicator of the overall profitability and financial performance of the business.
5. Return on equity (ROE) is a measure of financial performance.
6. Return on capital employed is a financial ratio that measures our companys profitability in terms of all of its capital.
7. Debt / Equity Ratio is used to measure the financial leverage of the Company and provides comparison benchmark against peers.
8. Net fixed asset turnover ratio is indicator of the efficiency with which our company is able to leverage its assets to generate revenue from operations.
9. The current ratio is a liquidity ratio that measures our companys ability to pay short-term obligations or those due within one year.
As per Restated Standalone Financial Statements
(? in Lakhs)
For the year ended March 31 |
|||
| Key Financial Performance | 2024 | 2023 | 2022 |
| Revenue from Operations (1) | 6,581.12 | 3,629.59 | 2,791.21 |
| EBITDA (2) | 1,770.35 | 495.16 | 252.52 |
For the year ended March 31 |
|||
| Key Financial Performance | 2024 | 2023 | 2022 |
| EBITDA Margin (%) (3) | 26.90% | 13.64% | 9.05% |
| PAT | 1,201.30 | 471.05 | 210.31 |
| PAT Margin (%) (4) | 18.25% | 12.98% | 7.53% |
| Return on equity (%) (5) | 52.12% | 48.49% | 33.34% |
| Return on capital employed (%) (6) | 42.47% | 30.66% | 21.54% |
| Debt-Equity Ratio (times) (7) | 0.31 | 0.66 | 0.69 |
| Net fixed asset turnover ratio (times) (8) | 26.71 | 27.01 | 116.72 |
| Current Ratio (times) (9) | 3.00 | 1.91 | 1.98 |
*As certified by M/s Vijay Darji & Associates, Chartered Accountants, by way of their certificate dated May 20, 2024.
Notes:
1. Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps to assess the overall financial performance of our Company and volume of our business.
2. EBITDA provides information regarding the operational efficiency of the business.
3. EBITDA Margin (%) is an indicator of the operational profitability and financial performance of our business.
4. PAT Margin (%) is an indicator of the overall profitability and financial performance of the business.
5. Return on equity (ROE) is a measure of financial performance.
6. Return on capital employed is a financial ratio that measures our companys profitability in terms of all of its capital.
7. Debt / Equity Ratio is used to measure the financial leverage of the Company and provides comparison benchmark against peers.
8. Net fixed asset turnover ratio is indicator of the efficiency with which our company is able to leverage its assets to generate revenue from operations.
9. The current ratio is a liquidity ratio that measures our companys ability to pay short-term obligations or those due within one year.
10. Net Profit Margin (also known as "Profit Margin" or "Net ProfitMargin Ratio") is afinancial ratio used to calculate the percentage ofprofit our company produces from its total revenue.
DISCUSSION ON RESULT OF OPERATIONS
The following discussion on results of operations should be read in conjunction with the Restated Financial Statements for the Financial Year ended March 31, 2024, March 31, 2023 and March 31,2022.
Consolidated Restated Financials
(? in Lakhs)
| Particulars | Year Ended 31st March, 2024 | % of Total revenue | Year Ended 31st March, 2023 | % of Total revenue | Year Ended 31st March, 2022 | % of Total revenue |
| Revenue | ||||||
| Revenue from operations | 6,581.12 | 99.59% | 3,629.59 | 98.76% | 2791.21 | 99.62% |
| Other income | 27.39 | 0.41% | 45.40 | 1.24% | 10.71 | 0.38% |
| Total Revenue (A) | 6,608.50 | 100.00% | 3,675.00 | 100.00% | 2,801.92 | 100.00% |
| Expenses | ||||||
| Change in Inventory | (14.49) | (0.22%) | (499.57) | (13.59%) | (75.48) | (2.69%) |
| Cost of Raw Material Consumed | 4,049.95 | 61.28% | 3,184.00 | 86.64% | 2,069.31 | 73.85% |
| Employee Benefits Expense | 509.78 | 7.71% | 213.63 | 5.81% | 372.97 | 13.31% |
| Finance Costs | 84.55 | 1.28% | 52.79 | 1.44% | 36.48 | 1.30% |
| Depreciation and amortisation Expense | 13.33 | 0.20% | 10.71 | 0.29% | 14.25 | 0.51% |
| Other Expenses | 265.53 | 4.02% | 236.37 | 6.43% | 171.89 | 6.13% |
| Total Expenses (B) | 4,908.65 | 74.28% | 3,197.93 | 87.02% | 2,589.42 | 92.42% |
| Particulars | Year Ended 31st March, 2024 | % of Total revenue | Year Ended 31st March, 2023 | % of Total revenue | Year Ended 31st March, 2022 | % of Total revenue |
| PROFIT BEFORE TAX | 1,699.85 | 25.72% | 477.07 | 12.98% | 212.50 | 7.58% |
| Share of Profit in associate enterprises | 8.00 | 0.12% | 6.80 | 0.19% | (5.12) | (0.18%) |
| Tax Expense | ||||||
| Current tax | 495.00 | 7.49% | 3.28 | 0.09% | 3.24 | 0.12% |
| Tax pertaining to earlier years | (4.43) | (0.07%) | (1.64) | (0.04%) | 0.00 | 0.00% |
| Deferred tax (credit)/charge | (0.88) | (0.01%) | 1.09 | 0.03% | (1.05) | (0.04%) |
| Total Tax Expenses | 498.55 | 7.41% | 6.02 | 0.07% | 2.19 | 0.08% |
| Profit for the period / year | 1,209.30 | 18.43% | 477.85 | 13.09% | 205.19 | 7.32% |
Revenue from operations:
Revenue from operations mainly consists of revenue from services such as Advance Traffic Management System, Toll management System, Electrical, Tunnel Management System.
Other Income:
Other income primarily comprises of interest on FDR, Bad-debts/Balances written back.
Total Expenses:
Total expenses consist of operating cost like Cost of Material consumed, Purchase of Stock in trade, Change in inventories of finished goods, Employee benefits expense, Finance costs, Depreciation and amortization expenses and other expenses.
Cost of Material consumed
Cost of Material consumed expenses primarily comprises of Purchase of raw material and change in stock of raw material.
Change in inventories of finished goods, work in progress and stock in trade
Change in inventories of finished goods for the projects comprises of increase/ (decrease) in stock of finished goods.
Employee benefits expense:
Employee benefits expense primarily comprises of Salaries, wages & bonus expenses to Staff and Directors, Staff welfare expenses, labour welfare fund and Employers Contribution to PF and Gratuity.
Finance Costs:
Our finance cost includes Interest expenses, Loan Processing Charges and Bank charges.
Depreciation and Amortization Expenses:
Depreciation includes depreciation on building, Plant & machinery, Computers, furniture and fixtures, Electrical Installations, Motor Vehicles and office equipment.
Other Expenses:
Other Expenses consists Electricity, Rates & Taxes, Insurance expenses, Manpower Expense, legal and professional expenses, Telephone and internet Expense, Rent, Site expenses, Tour and travelling expenses, repair and maintenance, Freight & Forwarding charges, Vehicle related costs, auditor fees and miscellaneous expenditure.
I FINANCIAL PERFORMANCE (CONSOLIDATED) HIGHLIGHTS FOR THE PERIOD ENDED MARCH 31, I 2024.
Total Income:
Total income for the period ended March 31, 2024, stood at ?6,608.50 Lakhs. The total income consists of revenue from operations and other income.
Revenue from Operations
During the period ended March 31, 2024, the net revenue from operation of our Company was ?6,581.12 Lakhs from services rendered in respect of Advance Traffic Management System, Toll management System, Electrical, Tunnel Management System.
Other Income:
During the period ended March 31, 2024 the other income of our Company stood at ?27.39 Lakhs. The main components of the other income are from interest on FDR, Balances written back.
Total Expenses
Total expenses consist of cost like cost of material consumed, change in inventories of finished goods, work in progress and stock in trade, employee benefits expense, finance costs, depreciation and amortization expenses and other expenses. During the period ended March 31, 2024, the total expenses of our Company stood at ?4,908.65 Lakhs.
Cost of Material consumed
During the period ended March 31, 2024 the Cost of Material consumed expenses of our Company stood at ?4,049.95 Lakhs. Our Cost of Material consumed expenses primarily comprises of Purchase of material and other attributable costs related to purchase of raw material.
Change in Site inventories.
During the period ended March 31, 2024 Change in inventories of finished goods, work in progress and stock in trade of our Company stood at ?(14.49) Lakhs. Our Change in Site inventories comprises of increase/(decrease) in finished goods.
Employee benefits expense:
During the period ended March 31, 2024 the employee benefit expenses of our Company stood at ?509.78 Lakhs. The main components of Salaries, wages & bonus expenses, Staff welfare expenses, labour welfare fund and Employers Contribution to PF and Gratuity.
Finance Costs:
During the period ended March 31, 2024, the finance cost expenses of our Company stood at ?84.55 Lakhs. Our finance cost includes Interest expenses and Bank charges.
Depreciation and Amortization Expenses:
During the period ended March 31,2024 the Depreciation and amortization charges of our Company stood at ?13.33 Lakhs, during the period the company has capitalized the fixed assets amounting to ?4.38 lakhs including Plant and machinery, computers, office equipment and vehicles.
Other Expenses:
During the period ended March 31, 2024, the Other Expenses of our Company stood at ?265.53 Lakhs.
Other Expenses consists of Electricity, Rates & Taxes, Insurance expenses, Manpower Expense, legal and professional expenses, Telephone and internet Expense, Rent, Site expenses, Tour and travelling expenses, repair and maintenance, Freight & Forwarding charges, Vehicle related costs, auditor fees and miscellaneous expenditure.
Restated Profit before tax:
The Company reported Restated profit before tax for period ending March 31, 2024, of ?1,699.85 Lakhs.
Restated profit after tax:
The Company reported Restated profit after tax for period ending March 31,2024 of ?1,209.30 Lakhs.
FINANCIAL YEAR 2024 COMPARED TO FINANCIAL YEAR 2023
Total Income:
Total income for the financial year 2023-24 stood at ?6,608.50 Lakhs whereas in Financial Year 2022-23 the same stood at ?3,675.00 Lakhs representing an increase of 79.82%. The main reason of increase was increase in the volume of business operation of the company.
Revenue from Operations
During the financial year 2023-24 the net revenue from operation of our Company increased to ?6,581.12 Lakhs as against ?3,629.59 Lakhs in the Financial Year 2022-23 representing an increase of 81.32%.
Other Income:
During the financial year 2023-24 the other income of our Company is ?27.39 as against ?45.40 in the Financial Year 2022-23 representing a decrease of 39.68 % which was due to reduction of interest on FDR and interest on FDR.
Total Expenses:
The total expense for the financial year 2023-24 increased to ?4,908.65 Lakhs from ?3,197.93 lakhs in the Financial Year 2022-23 representing an increase of 53.49%. Such increase was due to increase in business operations of the Company. Major reason for such increase is due to Website and Software, Site Expenses, Insurance expenses which is directly related to rendering of Services.
Cost of material consumed: -
Purchase of Stock in Trade:
The Purchase of Site related Stock of Inventory for the financial year 2023-24 increased to ?4,049.95 lakhs from ?3,184.00 lakhs in the Financial Year 2022-23 representing a increase of 27.20%.
Change in inventories of finished goods and work in progress:
The closing Site related inventories for the financial year 2023-24 was ?(14.49) lakhs as compared to ?(499.57) lakhs in the Financial Year 2022-23 representing a decrease in change in inventories of 97.10%. Reason for Decrease in Inventory position is due to higher Closing Stock of Inventory vis-a-vis Opening Stock of Inventory.
Employee benefits expense:
Our Company has incurred ?509.78 Lakhs as Employee benefits expense during the financial year 2023-24 as compared to ?213.63 Lakhs in the financial year 2022-23.
The increase of 138.62 % was due to increase in:
(i) Salary and Wages from ?
176.79 lakhs in financial year 2022-23 to ?458.87 lakhs in financial year 2023-24; and (ii) Gratuity and leave encashment cost increased from ? 4.76 lakhs in financial year 2022-23 as compared to ? 9.93 lakhs in the financial year 2023-24 and from ? 2.98 lakhs in financial year 2022-23 as compared to ? 8.03 lakhs in the financial year 2023-24 respectively.
Finance Cost:
Our Company has incurred ?84.55 Lakhs as finance cost during the financial year 2023-24 as compared to ?52.79 Lakhs in the financial year 2022-23. The increase of 60.16 % was due to increase in term loan during the of FY 2023-2024.
Depreciation and Amortization Expenses:
Depreciation for the financial year 2023-24 stood at ?13.33 Lakhs as against ? 10.71 Lakhs during the financial year 202223. The increase in depreciation was around 24.53 % which was due to purchase of Vehicles, Plant & Machinery, Office Equipment and Furniture & Fixtures and Installations of Electrical equipment.
Other Expenses:
Our Company has incurred ? 265.53 Lakhs during the Financial Year 2023-24 on other expenses as against ? 236.37 Lakhs during the financial year 2022-23. There was an increase of 12.34 % mainly due (i) increase in Website and Software by 327.19 % from ? 1.59 lakhs in financial year 2022-23 to ? 6.79 lakhs in financial year 2023-24, (ii) increase in Other Expense by 562.14% from ? 3.09 lakhs in financial year 2022-23 to ? 20.43 lakhs in financial year 2023-24.
Restated profit before tax:
Net profit before tax for the financial year 2023-24 increased to ?1,707.85 Lakhs as compared to ?483.87 Lakhs in the financial year 2022-23. The increase of 252.96 % was majorly due to factors as mentioned above.
Restated profit for the year:
As a result of the foregoing factors, our profit after tax for the year increase by 153.07 % from net profit of ?477.85 Lakhs in in financial year 2022-23 to net profit ? 1209.30 lakhs in financial year 2023-24.
RELATED PARTY TRANSACTIONS
Related party transactions with certain of our promoter, directors and their entities and relatives primarily relate to remuneration, salary, commission and issue of Equity Shares. For further details of related parties kindly refer chapter titled "Restated Financial Statements beginning on page 174 of this Draft Red Herring Prospectus.
OFF-BALANCE SHEET ITEMS
We do not have any other off-balance sheet arrangements, derivative instruments or other relationships with any entity that have been established for the purposes of facilitating off-balance sheet arrangements.
• QUALIFICATIONS OF THE STATUTORY AUDITORS WHICH HAVE NOT BEEN GIVEN EFFECT TO IN I THE RESTATED FINANCIAL STATEMENTS
There are no qualifications in the audit report that require adjustments in the Restated Financial Statements.
Standalone Restated Financials
(? in Lakhs)
| Particulars | Year Ended 31st March, 2024 | % of Total revenue | Year Ended 31st March, 2023 | % of Total revenue | Year Ended 31st March, 2022 | % of Total revenue |
| Revenue | ||||||
| Revenue from operations | 6,581.12 | 99.59% | 3,629.59 | 98.76% | 2791.21 | 99.62% |
| Other income | 27.39 | 0.41% | 45.40 | 1.24% | 10.71 | 0.38% |
| Total Revenue (A) | 6,608.50 | 100.00% | 3,675.00 | 100.00% | 2,801.92 | 100.00% |
| Expenses | ||||||
| Change in Inventory | (14.49) | (0.22%) | (499.57) | (13.59%) | (75.48) | (2.69%) |
| Cost of Raw Material Consumed | 4,049.95 | 61.28% | 3,184.00 | 86.64% | 2,069.31 | 73.85% |
| Particulars | Year Ended 31st March, 2024 | % of Total revenue | Year Ended 31st March, 2023 | % of Total revenue | Year Ended 31st March, 2022 | % of Total revenue |
| Employee Benefits Expense | 509.78 | 7.71% | 213.63 | 5.81% | 372.97 | 13.31% |
| Finance Costs | 84.55 | 1.28% | 52.79 | 1.44% | 36.48 | 1.30% |
| Depreciation and amortisation Expense | 13.33 | 0.20% | 10.71 | 0.29% | 14.25 | 0.51% |
| Other Expenses | 265.53 | 4.02% | 236.37 | 6.43% | 171.89 | 6.13% |
| Total Expenses (B) | 4,908.65 | 74.28% | 3,197.93 | 87.02% | 2,589.42 | 92.42% |
| PROFIT BEFORE TAX | 1,699.85 | 25.72% | 477.07 | 12.98% | 212.50 | 7.58% |
| Share of Profit in associate enterprises | 8.00 | 0.12% | 6.80 | 0.19% | (5.12) | (0.18%) |
| Tax Expense | ||||||
| Current tax | 495.00 | 7.49% | 3.28 | 0.09% | 3.24 | 0.12% |
| Tax pertainig to earlier years | (4.43) | (0.07%) | (1.64) | (0.04%) | 0.00 | 0.00% |
| Deferred tax (credit)/charge | (0.88) | (0.01%) | 1.09 | 0.03% | (1.05) | (0.04%) |
| Total Tax Expenses | 498.55 | 7.41% | 6.02 | 0.07% | 2.19 | 0.08% |
| Profit for the period / year | 1,209.30 | 18.43% | 477.85 | 13.09% | 205.19 | 7.32% |
Revenue from operations:
Revenue from operations mainly consists of revenue from services such as Advance Traffic Management System,
Toll management System, Electrical, Tunnel Management System.
Other Income:
Other income primarily comprises of interest on FDR, Bad-debts/Balances written back.
Total Expenses:
Total expenses consist of operating cost like Cost of Material consumed, Purchase of Stock in trade, Change in inventories of finished goods, Employee benefits expense, Finance costs, Depreciation and amortization expenses and other expenses.
Cost of Material consumed
Cost of Material consumed expenses primarily comprises of Purchase of raw material and change in stock of raw material.
Change in inventories of finished goods, work in progress and stock in trade
Change in inventories of finished goods for the projects comprises of increase/ (decrease) in stock of finished goods.
Employee benefits expense:
Employee benefits expense primarily comprises of Salaries, wages & bonus expenses to Staff and Directors, Staff welfare expenses, labour welfare fund and Employers Contribution to PF and Gratuity.
Finance Costs:
Our finance cost includes Interest expenses, Loan Processing Charges and Bank charges.
Depreciation and Amortization Expenses:
Depreciation includes depreciation on building, Plant & machinery, Computers, furniture and fixtures, Electrical Installations, Motor Vehicles and office equipment.
Other Expenses:
Other Expenses consists Electricity, Rates & Taxes, Insurance expenses, Manpower Expense, legal and professional expenses, Telephone and internet Expense, Rent, Site expenses, Tour and travelling expenses, repair and maintenance, Freight & Forwarding charges, Vehicle related costs, auditor fees and miscellaneous expenditure.
I FINANCIAL PERFORMANCE (CONSOLIDATED) HIGHLIGHTS FOR THE PERIOD ENDED MARCH 31, I 2024
Total Income:
Total income for the period ended March 31, 2024, stood at ?6,608.50 Lakhs. The total income consists of revenue from operations and other income.
Revenue from Operations
During the period ended March 31, 2024, the net revenue from operation of our Company was ?6,581.12 Lakhs from services rendered in respect of Advance Traffic Management System, Toll management System, Electrical, Tunnel Management System.
Other Income:
During the period ended March 31, 2024 the other income of our Company stood at ?27.39 Lakhs. The main components of the other income are from interest on FDR, Balances written back.
Total Expenses
Total expenses consist of cost like cost of material consumed, change in inventories of finished goods, work in progress and stock in trade, employee benefits expense, finance costs, depreciation and amortization expenses and other expenses. During the period ended March 31, 2024, the total expenses of our Company stood at ?4,908.65 Lakhs.
Cost of Material consumed
During the period ended March 31, 2024 the Cost of Material consumed expenses of our Company stood at ?4,049.95 Lakhs. Our Cost of Material consumed expenses primarily comprises of Purchase of material and other attributable costs related to purchase of raw material.
Change in Site inventories.
During the period ended March 31, 2024 Change in inventories of finished goods, work in progress and stock in trade of our Company stood at ?(14.49) Lakhs. Our Change in Site inventories comprises of increase/(decrease) in finished goods.
Employee benefits expense:
During the period ended March 31, 2024 the employee benefit expenses of our Company stood at ?509.78 Lakhs. The main components of Salaries, wages & bonus expenses, Staff welfare expenses, labour welfare fund and Employers Contribution to PF and Gratuity.
Finance Costs:
During the period ended March 31, 2024, the finance cost expenses of our Company stood at ?84.55 Lakhs. Our finance cost includes Interest expenses and Bank charges.
Depreciation and Amortization Expenses:
During the period ended March 31, 2024 the Depreciation and amortization charges of our Company stood at ?13.33 Lakhs, during the period the company has capitalized the fixed assets amounting to ?4.38 lakhs including Plant and machinery, computers, office equipment and vehicles.
Other Expenses:
During the period ended March 31, 2024, the Other Expenses of our Company stood at ?265.53 Lakhs.
Other Expenses consists of Electricity, Rates & Taxes, Insurance expenses, Manpower Expense, legal and professional expenses, Telephone and internet Expense, Rent, Site expenses, Tour and travelling expenses, repair and maintenance, Freight & Forwarding charges, Vehicle related costs, auditor fees and miscellaneous expenditure.
Restated Profit before tax:
The Company reported Restated profit before tax for period ending March 31, 2024, of ?1,699.85 Lakhs.
Restated profit after tax:
The Company reported Restated profit after tax for period ending March 31,2024 of ?1,201.30 Lakhs.
Total Income:
Total income for the financial year 2023-24 stood at ?6,608.50 Lakhs whereas in Financial Year 2022-23 the same stood at ?3,675.00 Lakhs representing an increase of 79.82%. The main reason of increase was increase in the volume of business operation of the company.
Revenue from Operations
During the financial year 2023-24 the net revenue from operation of our Company increased to ?6,581.12 Lakhs as against ?3,629.59 Lakhs in the Financial Year 2022-23 representing an increase of 81.32%.
Other Income:
During the financial year 2023-24 the other income of our Company is ?27.39 as against ?45.40 in the Financial Year 2022-23 representing a decrease of 39.68 % which was due to reduction of interest on FDR and interest on FDR.
Total Expenses:
The total expense for the financial year 2023-24 increased to ?4,908.65 Lakhs from ?3,197.93 lakhs in the Financial Year 2022-23 representing an increase of 53.49%. Such increase was due to increase in business operations of the Company. Major reason for such increase is due to Website and Software, Site Expenses, Insurance expenses which is directly related to rendering of Services.
Cost of material consumed:
Purchase Of Stock in Trade:
The Purchase of Site related Stock of Inventory for the financial year 2023-24 increased to ?4,049.95 lakhs from ?3,184.00 lakhs in the Financial Year 2022-23 representing a increase of 27.20%.
Change in inventories of finished goods and work in progress:
The closing Site related inventories for the financial year 2023-24 was ?(14.49) lakhs as compared to ?(499.57) lakhs in the Financial Year 2022-23 representing a decrease in change in inventories of 97.10%. Reason for Decrease in Inventory position is due to higher Closing Stock of Inventory vis-a-vis Opening Stock of Inventory.
Employee benefits expense:
Our Company has incurred ?509.78 Lakhs as Employee benefits expense during the financial year 2023-24 as compared to ?213.63 Lakhs in the financial year 2022-23.
The increase of 138.62 % was due to increase in:
(i) Salary and Wages from ?176.79 lakhs in financial year 2022-23 to ?458.87 lakhs in financial year 2023-24; and (ii) Gratuity and leave encashment cost increased from ?4.76 lakhs in financial year 2022-23 as compared to ? 9.93 lakhs in the financial year 2023-24 and from ?2.98 lakhs in financial year 2022-23 as compared to ? 8.03 lakhs in the financial year 2023-24 respectively.
Finance Cost:
Our Company has incurred ?84.55 Lakhs as finance cost during the financial year 2023-24 as compared to ?52.79 Lakhs in the financial year 2022-23. The increase of 60.16 % was due to increase in term loan during the of FY 2023-2024.
Depreciation and Amortization Expenses:
Depreciation for the financial year 2023-24 stood at ?13.33 Lakhs as against ?10.71 Lakhs during the financial year 202223. The increase in depreciation was around 24.53 % which was due to purchase of Vehicles, Plant & Machinery, Office Equipment and Furniture & Fixtures and Installations of Electrical equipment.
Other Expenses:
Our Company has incurred ?265.53 Lakhs during the Financial Year 2023-24 on other expenses as against ?236.37 Lakhs during the financial year 2022-23. There was an increase of 12.34 % mainly due (i) increase in Website and Software by 327.19 % from ?1.59 lakhs in financial year 2022-23 to ?6.79 lakhs in financial year 2023-24, (ii) increase in Other Expense by 562.14% from ?3.09 lakhs in financial year 2022-23 to ?20.43 lakhs in financial year 2023-24.
Restated profit before tax:
Net profit before tax for the financial year 2023-24 increased to ?1,699.85 Lakhs as compared to ?477.07 Lakhs in the financial year 2022-23. The increase of 256.31 % was majorly due to factors as mentioned above.
Restated profit for the year:
As a result of the foregoing factors, our profit after tax for the year increase by 153.07 % from net profit of ?471.05 Lakhs in financial year 2022-23 to net profit ?1,201.30 lakhs in financial year 2023-24.
related Party transacton
Related party transactions with certain of our promoter, directors and their entities and relatives primarily relate to remuneration, salary, commission and issue of Equity Shares. For further details of related parties kindly refer chapter titled "Restated Financial Statements" beginning on page 174 of this Draft Red Herring Prospectus.
OFF-BALANCE SHEET ITEMS
We do not have any other off-balance sheet arrangements, derivative instruments or other relationships with any entity that have been established for the purposes of facilitating off-balance sheet arrangements.
(QUALIFICATIONS OF THE STATUTORY AUDITORS WHICH HAVE NOT BEEN GIVEN EFFECT TO IN I THE RESTATED FINANCIAL STATEMENTS
There are no qualifications in the audit report that require adjustments in the Restated Financial Statements.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2024, IIFL Capital Services Ltd. All Rights Reserved
IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
Invest wise with Expert advice
